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Why DCT Industrial Trust (DCT) is a Promising Bet Right Now

AMT DRE DCT SRG

Trades from $3

At present, the operating environment for industrial sector looks promising. Amid muted supply, demand is increasing from all sectors and markets. This is likely to push up the demand for Denver, CO-based real estate investment trust (“REIT”) DCT Industrial Trust Inc. (DCT - Free Report) .
 
Per a news by reit.com, demand is being generated from not only e-commerce retailers and traditional retailers, but also from conventional consumption-orientated companies. Alongside this positive market developments, robust fundamentals of this Zacks Rank # 2 (Buy) have brightened DCT Industrial Trust’s prospects.

DCT Industrial Trust delivered an average positive surprise of 5.18% over the trailing four quarters. The stock has a dividend yield of 2.6%. Year to date, the company recorded a price increase of 20.58%, whereas this increase for the Zacks categorized REIT and Equity Trust-Other industry was only 0.33% during the same time period.

This stock is also witnessing positive estimate revisions, reflecting investors’ bullish view on the stock. For 2016, the Zacks Consensus Estimate moved up 4 cents to $2.23 for 2016 and 3 cents to $2.36 for 2017, over the past 30 days.

Some other favorably ranked stocks in the same space include Seritage Growth Properties (SRG - Free Report) , Duke Realty Corporation (DRE - Free Report) and American Tower Corporation (AMT - Free Report) . All these stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Seritage Growth Properties’ current-quarter estimates have moved up 1.7% over the past one month to 59 cents.

Duke Realty’ current-quarter estimates have moved up 3.3% over the past one month to 31 cents.

Current-quarter estimates for American Tower Corporation remained unchanged at $1.43 over the past month.

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.

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